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Gold and Oil Markets Report – 08 August 2016

A guest post written by DAR Wong and Chong HC

Gold fizzled out after U.S. non-farm payroll showed 225,000 jobs created and above forecast. Crude prices dived to 40.00 bottoms and short-covered a little behind weekend. Stock indexes lifted higher again after Bank of Japan and Bank of England introduced loosening control on monetary policy. Japan announced JPY13.5 trillion of new stimulus below expectation of market investors while U.K. cut 0.25 percent interest rates that pushed FTSE 100 index higher.

Crude Oil

WTI Crude prices reached below 40.00 benchmarks and bounced little bit before last weekend. Moving forward, we forecast the trend will trade sideways from 39.00 – 44.00 areas this week. Increasing crude inventories may continue to weigh down on oil prices especially with metals also falling alongside. Observe the U.S. Dollar index as next leading factor to inversely move the commodity prices.

Gold

Gold prices closed at 1335.00 regions after fallen off 1360.00 highs last week. Technically, the market is prone to decline further and might test 1320.00 supports before demand steps into market. This week, we reckon the trend is prone to make a final bottom before the imminent bull run. Strong support is expected to emerge at 1300.00 – 1320.00 regions while resistance lies at 1360.00 levels.

Silver

Silver prices fell to 19.700 lows on Friday at 3 consecutive bearish days. This week, we foresee the trend will test 19.000 supports and begin to bounce up via short-covering. Technically, demand has been strong at 19.000 benchmarks and range is probably going to thread from 19.000 – 21.000 areas in coming week.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded higher last week as Ringgit prone to move weaker against Dollar. October contract closed at 2405 on Friday in rising volume. This week, the trend will rise higher to 2450 areas and resisted by EMA200 line. Failure to clear above 2405 levels and recede and fall back to 2305 in sideways behavior until we see clearer trend in Ringgit direction.

Dar Wong

This post is contributed by OPF Guest Bloggers, DAR Wong and Chong HC

DAR Wong and Chong HC are the market strategists in APSRI on CPO markets. DAR has 26 years of trading and hedging experiences while HC trades for 7 years and now coaches institutional customers. They can be reached at www.traderpromaster.com

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DISCLAIMER: This post is written for general information only. The author, publisher and/or any third party involved in the distribution of this work assume no legal responsibilities and shall have no liability whatsoever for any direct or consequential losses, costs or expenses arising from the use of the information contained herein.

 






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